Technology Modernization Fund Not Enough for Every Agency’s Needs, SBA Official Says

Sanjay Gupta, the Small Business Administration’s chief technology officer, said the Technology Modernization Fund will not be sufficient to help every federal agency achieve their modernization objectives despite a $1 billion increment included in the American Rescue Plan Act. Gupta’s statement echoed sentiments expressed in an annual survey of federal chief information officers conducted by the Professional Services Council, FCW reported Thursday.

Gupta explained that while the TMF has helped agencies accomplish several successful modernization projects, it can only go so far in achieving government-wide digital transformations if Congress does not supplement the existing budget with additional funding.

Gupta said that while the present allocation seems substantial at first glance, it is actually quite meager when contrasted with the overall spending required in the IT landscape. Additionally, he said that each agency is only given “12-month money” under the appropriation cycle, meaning agencies only have one year to use the funding, assuming an agency receives the full funding at all.

Despite these limitations, Gupta said that the TMF Board, of which he is a member, will continue to help agencies meet modernization objectives through information-sharing partnerships and has been reviewing new funding proposals. This is evidenced by the $311 million in new awards since the additional funding and relaxed payback requirements in an effort to attract more project proposals across agencies.

Meanwhile, the PSC gleaned from its survey that interest in the TMF had grown from 2020 to 2021, though many agencies still declined to use the fund as an alternative option to fund their modernization initiatives. The body also noted that agencies were not always using the TMF fund wisely.